And yet another one bites the dust. However, at least for now, this one shouldn’t cost us a dollar in bailout money as J.P. Morgan Chase & Co. has bought them up without the help of the government. *Update – it might, according to the WSJ, as JP Morgan is not taking everything.This is the single biggest bank failure in history, with part of the reason being that the bank lost $16.7 billion in deposits since Sept. 15 – ouch. But under this sale, J.P. Morgan will assume Washington Mutual’s deposits and branches, and they should be able to avoid using money from the FDIC’s deposit insurance fund – which I am sure is quickly being depleted. For some reason the government is not helping J.P. Morgan pay for this acquisition, unlike the last bank they took over.
For those of you with accounts at WaMu, I found an article that might be of interest called “WaMu customers have little to worry about” that came out last week. While regulators and the news are sorting out the details of this sale, check it out to learn what could be happening in the coming days.
It is amazing how these banks are failing all in a row, and seemingly no one except for a few was that worried about it a few weeks ago. You telling me that the Fed and the Treasury didn’t see this coming from a mile away? And if they didn’t, why are we allowing them to organize and oversee the bailout?